Table 1: Sales of Different Firms under Alternative FDI Regimes
|
FDI Regime ' |
Sales in Country i by |
Sales in Country j by | ||||
|
MNC: xt0 |
Firm i: xii |
Firm j: xij |
MNC: X0 |
Firm i: xji |
Firm j: xjj | |
|
0: X |
ɪ-t 2 |
- |
- |
1-t 2 |
- |
- |
|
0: F1 |
ɪ |
- |
- |
l-τ 2 |
- |
- |
|
0: Fn |
ɪ |
- |
- |
ʌ |
- |
- |
|
n: X |
1 -(n+l)Z+(n-l)τ |
l+f+(n-l)τ |
l+f-3τ |
l-(n+l)f+(n-l)τ |
l+f-3τ |
l+f+(n-l)τ |
|
n+2 |
n+2 |
n+2 |
n+2 |
n+2 |
n+2 | |
|
n: F1 |
l+(n-l)τ |
l+(n-l)τ |
l-3τ |
l-2τ |
l-2τ |
l+nτ |
|
n+2 |
n+2 |
n+2 |
n+2 |
n+2 |
n+2 | |
|
n: Fn |
l+(n-l)τ |
l+(n-l)τ |
l-3τ |
l+(n-l)τ |
l-3τ |
l+(n-l)τ |
|
n+2 |
n+2 |
n+2 |
n+2 |
n+2 |
n+2 | |
Note: Operating profits in country i are equal to the square of sales there in all cases.
X: MNC located outside the union
F1: MNC located in one union country (country i) only
Fn: MNC located in all union countries
29
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